Profit-Taking Drags Nigerian Stock Market by ₦2.29 Trillion in One Week
The Nigerian stock market extended its slump for a second consecutive week, losing ₦2.29 trillion in market capitalization amid sustained profit-taking in heavyweight stocks like Dangote Cement Plc and BUA Cement Plc.
The NGX All-Share Index (ASI) dipped 0.77% week-on-week (WoW), closing at 144,628.20 points. This moderation brought Month-to-Date (MtD) gains to +0.8% and Year-to-Date (YtD) gains to +37%, showing that while losses occurred, the market is still holding some ground over the year.
Sector Performance Snapshot:
• Industrial Goods: -8.4%
• Insurance: -4.2%
• Banking: -3.5%
• Oil & Gas: -0.8%
• Consumer Goods: +0.8% (the only sector to close higher)
The downturn impacted investor sentiment, reflected in a weak market breadth with 43 gainers versus 54 decliners.
Top Movers – Gainers:
• Austin Laz & Company: +20.83% to N2.90 per share
• NCR Nigeria: +20.69% to N10.50 per share
• Nigerian Enamelware: +19.45% to N39.00 per share
Top Movers – Losers:
• Thomas Wyatt Nigeria: -18.92% to N3.00 per share
• NEM Insurance: -18.15% to N26.60 per share
• Stanbic IBTC Holdings: -15.39% to N94.00 per share
Market Activity:
• Total shares traded: 4.773 billion
• Total turnover: ₦107.426 billion
• Number of deals: 152,965
Compared to the previous week, trading volume dropped from 8.564 billion shares (₦99.936 billion in 177,870 deals), reflecting reduced market participation.
Analyst Insights & Outlook:
• Cowry Asset Management: Markets may trade mixed with cautious sentiment. Banking and Industrial Goods stocks could remain under pressure, but bargain-hunting in Consumer Goods may trigger mild recoveries.
• United Capital Plc: Positive expectations remain for financial services and potentially strong earnings from the manufacturing sector, which may lift broader market sentiment.
• Afrinvest Limited: Expects a mixed but bearish tilt, as investors reassess portfolios amid H1:2025 interim dividends and sustained pressure on blue-chip stocks.
• Cordros Research: Anticipates continued profit-taking, with selective buying in fundamentally strong equities. Medium-term sentiment will be shaped by macroeconomic developments, including growth, inflation, policy direction, and fixed income yields, influencing asset allocation between equities and debt instruments.
Takeaway:
Last week’s market losses were largely driven by profit-taking in heavyweight stocks, while oversold consumer-oriented counters offered limited relief. Analysts expect cautious trading this week, with potential selective recovery in consumer goods and other fundamentally sound stocks, but macro headwinds may continue to cap broader market gains.
The Nigerian stock market extended its slump for a second consecutive week, losing ₦2.29 trillion in market capitalization amid sustained profit-taking in heavyweight stocks like Dangote Cement Plc and BUA Cement Plc.
The NGX All-Share Index (ASI) dipped 0.77% week-on-week (WoW), closing at 144,628.20 points. This moderation brought Month-to-Date (MtD) gains to +0.8% and Year-to-Date (YtD) gains to +37%, showing that while losses occurred, the market is still holding some ground over the year.
Sector Performance Snapshot:
• Industrial Goods: -8.4%
• Insurance: -4.2%
• Banking: -3.5%
• Oil & Gas: -0.8%
• Consumer Goods: +0.8% (the only sector to close higher)
The downturn impacted investor sentiment, reflected in a weak market breadth with 43 gainers versus 54 decliners.
Top Movers – Gainers:
• Austin Laz & Company: +20.83% to N2.90 per share
• NCR Nigeria: +20.69% to N10.50 per share
• Nigerian Enamelware: +19.45% to N39.00 per share
Top Movers – Losers:
• Thomas Wyatt Nigeria: -18.92% to N3.00 per share
• NEM Insurance: -18.15% to N26.60 per share
• Stanbic IBTC Holdings: -15.39% to N94.00 per share
Market Activity:
• Total shares traded: 4.773 billion
• Total turnover: ₦107.426 billion
• Number of deals: 152,965
Compared to the previous week, trading volume dropped from 8.564 billion shares (₦99.936 billion in 177,870 deals), reflecting reduced market participation.
Analyst Insights & Outlook:
• Cowry Asset Management: Markets may trade mixed with cautious sentiment. Banking and Industrial Goods stocks could remain under pressure, but bargain-hunting in Consumer Goods may trigger mild recoveries.
• United Capital Plc: Positive expectations remain for financial services and potentially strong earnings from the manufacturing sector, which may lift broader market sentiment.
• Afrinvest Limited: Expects a mixed but bearish tilt, as investors reassess portfolios amid H1:2025 interim dividends and sustained pressure on blue-chip stocks.
• Cordros Research: Anticipates continued profit-taking, with selective buying in fundamentally strong equities. Medium-term sentiment will be shaped by macroeconomic developments, including growth, inflation, policy direction, and fixed income yields, influencing asset allocation between equities and debt instruments.
Takeaway:
Last week’s market losses were largely driven by profit-taking in heavyweight stocks, while oversold consumer-oriented counters offered limited relief. Analysts expect cautious trading this week, with potential selective recovery in consumer goods and other fundamentally sound stocks, but macro headwinds may continue to cap broader market gains.